Axita Cotton Limited IPO – Review, Allotment, Subscription, GMP & DRHP

Axita Cotton Limited  is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. Axita Cotton Limited IPO comprises public Issue of  17,52,000 Equity Shares of Rs.10/- each at a price of Rs. 60  per Equity Share aggregating to Rs. 1051.20 Lakh.

Let’s have a detailed review of the company and analytics of the Axita Cotton Limited IPO release date, IPO offer price, subscription, Axita Cotton Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Axita Cotton Limited IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 8.5/10
Industry Ranking 7.8/10
Company Background 7.9/10
Company Reputation 7.9/10
Competitive Edge 7.7/10
Financial Statements 7.8/10
Popularity Index 8.4/10
Promoters Reputation 7.7/10
Retail Appetite 7.9/10
Top Brokers Review 7.9/10
Overall Ratings 8.1/10
Star Ratings ★★★★☆

Summary of Axita Cotton Limited IPO

Axita Cotton Limited IPOAxita Cotton Limited Company is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of their Company is situated at Kadi in Mahesana District of Gujarat state which is close to the rich cotton growing areas of Maharashtra, Saurashtra and other regions of Gujarat. Initial public offer of up to 1752000  Equity Shares of Rs. 10 each, at an Offer Price of Rs.60 per Equity Share for cash aggregating up to Rs. 1051.20 lakh. 

From FY 2013-14 to FY 2016-2017, as per the Restated Financial Statements,

  • The EBITDA and restated profit for the period/year have grown at a CAGR of 109.24% in  Fiscal 2018 from fiscal 2017 and were Rs.49.49 lakh and Rs. 109.24 lakh , respectively, in the three months ended June 30, 2018.
  • The net asset value per Equity Share was Rs. 2,148.09  and Rs.1,810.28 as of June 30, 2018 and March 31, 2018, respectively, as per the Restated  Financial Statements .
  • The company sales have grown at a CAGR of 21.92% from  12,345.78  lakh in Fiscal 2018 to 1,736.08 lakh  in Fiscal 2014  .

The Promoters of this company are Mr. Nitinbhai Govindbhai Patel, Mr. Kushal Nitinbhai Patel and Mr. Amitkumar Govindbhai Patel . The lead manager to the issue are  Beeline Broking Limited and the Registrar to this issue is  Link Intime India Private Limited.


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Axita Cotton Limited IPO Date

The opening and the closing date of Axita Cotton Limited IPO is not known yet.


Axita Cotton Limited IPO Subscription

Day / Date QIB NII RII Total Subscription
Day 1 
Day 2
Day 3
Day 4
Day 5
Shares Offered or Net Issue

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


Axita Cotton Limited IPO Allotment Status

Here, you can find the Allotment Status of this IPO.


Axita Cotton Limited IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed. 


Axita Cotton Limited IPO Equity Share Offering

Initial public offer of up to 1752000 Equity Shares of Rs. 10 each, at an Offer Price of Rs. [●] per Equity Share for cash aggregating up to Rs. 15,500 million.


Axita Cotton Limited – Company Overview

Axita Cotton Limited   Company is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of their Company is situated at Kadi in Mahesana District of Gujarat state which is close to the rich cotton growing areas of Maharashtra, Saurashtra and other regions of Gujarat. Their products are sold majorly in the state of Gujarat, Rajasthan, Maharashtra and Madhya Pradesh. They are also engaged in the business of trading of Kapas, cotton bales and cotton seeds. We are also doing ginning and pressing of Kapas on job work basis.

The Company is promoted by Mr. Nitinbhai Govindbhai Patel, Mr. Kushal Nitinbhai Patel and Mr. Amitkumar Govindbhai Patel and are the guiding force behind the growth and strategic decisions of the Company.

Competitive Strengths of Axita Cotton Limited :

  • Installed Capacity of 87,600 MT/Annum
  • Locational Advantage
  • Increase in Business Scalibility and Captive Consumption

Business strategies of Axita Cotton Limited :

  • Inventory Level/Stocking of Goods
  • Quality of their products
  • Optimal Utilization of Resources
  • To build-up a professional organization
  • Continue to maintain strong relationships with  Customers

Axita Cotton Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

On the basis of Standalone statement:-

Amount (in INR & Lakhs)
31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 1,810.28 1,316.47 898.37 786.40 834.89
Total Revenue 12,345.78 9,023.06 6,808.83  7,691.20 1,736.08
Total Expense 12,283.11 9,150.67 6,858.83 7,736.45 1,725.65
Profit After Tax 82.13 2.71 12.46 (28.51) 5.85

Earnings per Equity Share (in Lakhs)

31-Mar-18 31-Mar-17 31-Mar-16
Basic & Diluted 3.29 0.11 0.50

From the above statements, one could find that the Axita Cotton Limited may perform well.


Axita Cotton Limited IPO – Promoters

The Promoters of this company are:

  • Mr. Nitinbhai Govindbhai Patel
  • Mr. Kushal Nitinbhai Patel
  • Mr. Amitkumar Govindbhai Patel

List of Related Parties (Key Managerial Personnel)

  • Mr. Nitinbhai Govindbhai Patel
  • Mr. Kushal Nitinbhai Patel
  • Mr. Amitkumar Govindbhai Patel

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


Axita Cotton Limited IPO Offer Details or Issue Details

Particulars  No. Of Equity Shares
 Equity Shares Offered  1752000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 1051.20 Lakh
 Of which:
 Reserved for Market Makers   

92000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 55.20 Lakh

 Net Issue to the Public  1660000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 996.00 Lakh
 Of which:
 Retail Investors Portion  582000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 349.20 Lakh
 Non-Retail Investors Portion 1078000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 40/- each aggregating to Rs. 646.80 Lakh
 Equity Shares outstanding prior to the Issue 4800000 Equity Shares of Rs. 10/- each
 Equity Shares outstanding after the Issue 6552000 Equity Shares of Rs. 10/- each

Axita Cotton Limited IPO Issue Object

The IPO Issue Objects of the company is:

  • Net Incremental Working Capital Requirement

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Axita Cotton Limited IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  •  Location of the Factory (production Unit)
  • Experienced management team and a motivated & efficient work force
  • Installed Capacity, Cost effective production and timely fulfillment of orders
  • Increase in Business scalability

The relevant quantitative factors are:

Basic & Diluted EPS RONW (%) NAV (Rs.)
31-Mar-16 0.50 5.41
31-Mar-17 0.11 1.15
31-Mar-18 3.29 25.97 14.01
  • Competitive Peers:
Sr. No.  Particulars Face Value  (in Rs.) Basic EPS (In Rs.) P/E Ratio RONW in %
1 Pashupati Cotspin Limited 10 Negative Negative Negative
2 Santaram Spinners Limited 10 0.36 26.31 2.08

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Axita Cotton Limited IPO Lead Managers

Lead Managers
BEELINE BROKING LIMITED
SEBI Registration Number: INM000012546
Address: Office No. 1 To 3,Vishwa Complex, First Floor, Opp.
Jain Derasar, Navrangpura, Ahmedabad – 380 009
Telephone Number: +91 79 6666 4007
Email Id:
Investors Grievance Id:
Website: www.beelinebroking.com
Contact Person: Mr. Vanesh Panchal
CIN: U51900GJ2014PLC080598

Axita Cotton Limited IPO Registrar to offer

Registrar to the Offer
LINK INTIME INDIA PRIVATE LIMITED
SEBI Registration Number: INR000004058
Address: C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Maarg,
Vikhroli (West), Mumbai – 400 083, Maharashtra
Tel. Number: +91 22 4918 6200; Fax Number: +91 22 4918 6195
Email Id:
Investors Grievance Id:
Website: www.linkintime.co.in
Contact Person: Ms. Shanti Gopalkrishnan
CIN: U67190MH1999PTC118368

Other Details:

  • Statutory Auditor – M/s. Manish Dave & Co., Chartered Accountants
  • Peer Review Auditor –  M/s. Purushottam Khandelwal & Co., Chartered Accountants
  • Bankers to the Company –  Oriental Bank of Commerce

Axita Cotton Limited IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.5/10 7.4/10 8.5/10 8.1/10 7.1/10
Sharekhan 7.2/10 7.1/10 8.6/10 8.1/10 7.2/10
Kotak Securities 7.3/10 7.5/10 8.4/10 8.1/10 7.3/10
ICICI Direct 7.3/10 7.3/10 8.7/10 8.1/10 7.1/10
IIFL 7.5/10 7.2/10 8.8/10 8.0/10 7.1/10
Edelweiss 7.5/10 7.4/10 8.4/10 8.3/10 7.2/10
Zerodha 7.4/10 7.1/10 8.5/10 8.1/10 7.0/10
5Paisa 7.1/10 7.1/10 8.4/10 8.1/10 7.1/10
Karvy 7.4/10 7.3/10 8.2/10 8.1/10 7.1/10
Motilal Oswal 7.1/10 7.1/10 8.6/10 8.3/10 7.2/10

Axita Cotton Limited IPO Grey Market Premium

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Axita Cotton Limited IPO News

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